Advertisement

Models of Competition

  • Robin Maialeh
Chapter
  • 15 Downloads
Part of the Contributions to Economics book series (CE)

Abstract

Theories of economic inequality frequently concern individual characteristics as the prime determinant of economic distribution. This chapter therefore accentuates partly overlooked but important structural feature of the market mechanism, namely competition among economic agents. It is the ruling principle of allocation of resources which keeps the dynamics of the whole market system. As will be explained in more details, the dynamics of the market system based on competition subsequently results in growth stimulating tendencies. The chapter therefore considers selected competition theories in order to depict important perspectives on competing agents in the context of the main driving forces of economic growth in modern economies. At the end, the task is to connect competitive structures and economic distribution. Understandably, we include just a small fraction of theories accentuating competition. On the other hand, presented models unveil the founding pillars of competitive processes which influence economic distribution at the end. Hence, we automatically abstract from various particular aspects that are usually present in extended versions of growth and competition models. By following this strategy, again, we elevate these models on a higher level of abstractness which eliminates various possible sorts of selectivity. A higher perspective also allows to formulate models for different types of agents, from individuals and households to firms and national states.

References

  1. Aghion P, Howitt P (1992) A model of growth through creative destruction. Econometrica 60(2):323–351CrossRefGoogle Scholar
  2. Anazawa M (2019) Inequality in resource allocation and population dynamics models. R Soc Open Sci 6(7):182178CrossRefGoogle Scholar
  3. Baker J, Salop S (2015) Antitrust, competition policy, and inequality. Georgetown Law J 104:1–28Google Scholar
  4. Beverton RJH, Holt SJ (1957) On the dynamics of exploited fish populations. Fisheries Investigations Series II, 19. LondonGoogle Scholar
  5. Comanor WS, Smiley RH (1975) Monopoly and the distribution of wealth. Q J Econ 89(2):177–194CrossRefGoogle Scholar
  6. Creedy J, Dixon R (1999) The distributional effects of monopoly. Aust Econ Pap 38(3):223–237CrossRefGoogle Scholar
  7. De Loecker J, Eeckhout J, Unger G (2019) The rise of market power and the macroeconomic implications. Quart J Econ (forthcoming)Google Scholar
  8. Ennis S, Kim Y (2016) Market power and wealth distribution. In: A step ahead: competition policy, shared prosperity and inclusive growth. World Bank, Washington, DCGoogle Scholar
  9. Ennis S, Gonzaga P, Pike C (2019) Inequality: a hidden cost of market power. Oxf Rev Econ Policy 35(3):518–549CrossRefGoogle Scholar
  10. Furman J, Orszag P (2015) A firm-level perspective on the role of rents in the rise in inequality. Columbia University, A Just Society Centennial Event in Honor of Joseph StiglitzGoogle Scholar
  11. Gans JS, Leigh A, Schmalz MC, Triggs A (2019) Inequality and market concentration, when shareholding is more skewed than consumption. Oxf Rev Econ Policy 35(3):550–563CrossRefGoogle Scholar
  12. Hassel MP (1975) Density-dependence in single-species populations. J Anim Ecol 44:283–295CrossRefGoogle Scholar
  13. Lotka AJ (1925) Elements of physical biology. Williams & Wilkins, BaltimoreGoogle Scholar
  14. Nicholson AJ (1954) An outline of the dynamics of animal populations. Aust J Zool 2:9–65CrossRefGoogle Scholar
  15. Park T (1962) Beetles, competition, and populations. Science 138(3548):1369–1375CrossRefGoogle Scholar
  16. Ricker WE (1954) Stock and recruitment. J Fish Res Board Can 11:559–623CrossRefGoogle Scholar
  17. Rognlie M (2015) Deciphering the fall and rise in the net capital share. Brook Pap Econ Act 46(1):1–69CrossRefGoogle Scholar
  18. Sweezy P (1968) The theory of capitalist development. Monthly Review Press, New YorkGoogle Scholar
  19. Tilman D (1982) Resource competition and community structure. Princeton University Press, PrincetonGoogle Scholar
  20. Tirole J (1988) The theory of industrial organization. MIT Press, MAGoogle Scholar
  21. Volterra V (1926) Variazioni e fluttuazioni del numero d’individui in specie animali conviventi. Memoria della Reale Accademia Nazionale dei Lincei 2:31–113Google Scholar

Copyright information

© Springer Nature Switzerland AG 2020

Authors and Affiliations

  • Robin Maialeh
    • 1
    • 2
  1. 1.Department of Economics, Faculty of EconomicsUniversity of EconomicsPragueCzech Republic
  2. 2.Unicorn Research CentrePragueCzech Republic

Personalised recommendations